Call us: (905) 366 9700

Legal Blog

Nice Try

Posted on June 1, 2004 | Posted in Lawyers' Issues

A 1988 mortgage was somewhat unusual; it provided for no payment of principal or interest until at least 1998. After that, the mortgagee could initiate an appraisal process and demand payment or the mortgagor could initiate a sale process. In 1998, the mortgagee obtained an appraisal and demanded payment; the mortgagor commenced an action alleging that the 10-year limitation period had passed and that the mortgagee had lost its right to the money.

This actually happened: see Saved by Technology Inc. v. Thomas [2004] O.J. No. 343 (S.C.J.).

The judge spent 15 paragraphs explaining what we would have thought was obvious. A limitation period does not start to run until the mortgagee has a cause of action. If there is no default, there is no cause of action.

The judge awarded the mortgagee summary judgment for possession of the mortgaged property.


Download our free checklist:

“10 Questions to ask before hiring a law firm”


Speigel Nichols Fox LLP